Arbitration Deed Template for the United Arab Emirates
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What is a Arbitration Deed?
The Arbitration Deed serves as a formal submission agreement for existing disputes in the UAE legal framework, particularly under Federal Law No. 6 of 2018 on Arbitration. This document is utilized when parties, who may not have a pre-existing arbitration agreement, decide to submit their dispute to arbitration rather than pursuing litigation in courts. The Arbitration Deed must comply with UAE arbitration law requirements and can be structured to accommodate proceedings in mainland UAE, DIFC, or ADGM jurisdictions. It typically includes detailed provisions about the dispute's scope, arbitrator selection, applicable rules, and procedural aspects, making it essential for businesses operating in the UAE's diverse commercial landscape. The document is particularly relevant for complex commercial disputes where parties prefer the flexibility, confidentiality, and expertise offered by arbitration.
About the Arbitration Deed
An Arbitration Deed is a crucial legal document that enables you to submit existing disputes to arbitration in the United Arab Emirates when no prior arbitration agreement exists between the parties. This formal submission agreement allows you to bypass traditional court litigation and resolve your commercial disputes through a private, confidential arbitration process under Federal Law No. 6 of 2018 on Arbitration.
When do you need this document?
You need an Arbitration Deed when you have an ongoing dispute with another party and both sides prefer arbitration over court proceedings, but lack a pre-existing arbitration clause in your original contract. This situation commonly arises in commercial relationships where disputes emerge after contract formation, such as joint venture disagreements, construction project conflicts, or financial service disputes. The document is particularly valuable when you want to maintain business relationships while resolving conflicts, as arbitration offers privacy and flexibility that court proceedings cannot provide. Corporate entities, government bodies, and free zone companies frequently use this deed to resolve complex commercial disputes efficiently.
Key legal considerations
Your Arbitration Deed must contain several critical elements to ensure enforceability under UAE law. The document must clearly define the scope of disputes being submitted to arbitration, specify the number and method of arbitrator appointment, and identify the applicable arbitration rules. You need to include detailed party identification with full legal names and registration details, particularly important for UAE entities operating under different jurisdictions. The deed should address the seat of arbitration, governing law, and procedural timelines. Consider including provisions for interim measures, confidentiality obligations, and costs allocation. Remember that certain disputes, such as those involving public policy or family matters, cannot be arbitrated under UAE law, so ensure your dispute falls within arbitrable matters.
Legal requirements in United Arab Emirates
Under Federal Law No. 6 of 2018 on Arbitration, your Arbitration Deed must be in writing and signed by all parties to be legally binding. The UAE Civil Code requires that arbitration agreements comply with general contract formation principles, including capacity, consent, and lawful subject matter. If your proceedings are seated in DIFC, you must also comply with DIFC Arbitration Law No. 1 of 2008, while ADGM-seated arbitrations require adherence to ADGM Arbitration Regulations 2015. The deed must specify whether UAE law or foreign law governs the substantive dispute, and ensure compliance with the New York Convention for international award enforcement. Consider language requirements, as Arabic translation may be necessary for certain proceedings, and ensure all corporate parties have proper board resolutions authorizing the arbitration submission.
GOVERNING LAW
Applicable law
This Arbitration Deed is drafted to comply with United Arab Emirates law. Key legislation includes:
UAE Civil Code (Federal Law No. 5 of 1985): Provides the general framework for contracts and obligations, including principles affecting the validity of arbitration agreements
UAE Civil Procedure Law (Federal Law No. 11 of 1992): Contains provisions relevant to the enforcement of arbitral awards and court intervention in arbitration
DIFC Arbitration Law (DIFC Law No. 1 of 2008): Governs arbitration proceedings seated in the Dubai International Financial Centre, if applicable
ADGM Arbitration Regulations 2015: Governs arbitration proceedings seated in the Abu Dhabi Global Market, if applicable
New York Convention 1958: International convention for the recognition and enforcement of foreign arbitral awards, ratified by the UAE
UAE Federal Decree No. 43 of 2006: UAE's ratification of the New York Convention, relevant for international arbitration enforcement
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